Too many bureaucrats spoil the policy broth

Natural gas, biofuel and petrol producers are frustrated by the government’s energy policy process, which involves at least nine government departments and agencies looking at different aspects of how transport fuels should be taxed or subsidised.

The Treasury, the Department of Prime Minister and Cabinet, the Department of Resources, Energy and Tourism, Australian Customs, the Department of Climate Change and Energy Efficiency and the Department of Innovation are all considering – in apparent isolation –how alternative fuels should be promoted.

“A lot of it is really good stuff but as an industry, we need to know whether we need to jump left or right," one industry representative said.

There are suggestions changes to the alternative fuels industry will be considered as part of a larger blueprint for the energy sector.

“It is a key issue that I am giving some attention to at the moment because I want to progress that outstanding work that was derailed in the last parliament because of our failure in the Senate with the Coalition, the Greens and the Liberal and National parties that derailed the CPRS," Resources Minister
Martin Ferguson
said last week.

An industry source said Treasury was close to finalising the details of a discussion paper which would help determine whether alternative fuel producers, distributors, retailers or consumers would pay the excise.

An Energy white paper, initiated by former prime minister Kevin Rudd, is unfinished business for the new minority government.

The Department of Resources, Energy and Tourism began its consultations for the policy paper in September, 2008.